Deducted tds but tan not obtained: penal consequences?

TDS 5090 views 7 replies

yashsr

2285 Points Joined April 2011

Hello,

A Pvt Ltd Company was formed in March 2011. Now, it did not apply for TAN No. However, while paying Rent of Rs.80000 each month to a person, it deducted 10% TDS i.e. it paid only 72000. It has now applied for TAN no. in April 2012. Obviously, since TAN no. was not obtained, it hasn't paid TDS, hasn't filed TDS returns and hasn't issued TDS Certificates.

Now, I want to ask the following regarding the above:

1) Can it now issue TDS Certificates for the Financial Year 2011-12 even though it did not have TAN no. in that year?

2) What will be the penal consequences?

Replies (7)

Dipjyoti Majumdar

CA in service & CS. dipmaj@

3488 Points Joined June 2011

TDS Returns can be filed as there is no time barred due date, only point is fine may be imposed if filed after normal due date. If returns can be filed, then 16A can also be generated.

Regards,

Sonam Bidasaria

770 Points Joined July 2008

The Company has made default in not making application for allotment of TAN No (April 2011, within 1 month from the end of the month in which TDS was deducted)under Sec 203A read with Rule 114A..

However, the Company can still file the return for all the four quarteres of financial year 11-12 as well as fourth quarter of financia year 2010-11.

Now, the Company has to pay 1.50% per month for default in deposting the TDS to the credit of Governemnt u/ 201(1A)(ii).

Sonam Bidasaria

770 Points Joined July 2008

The Company has made default in not making application for allotment of TAN No (April 2011, within 1 month from the end of the month in which TDS was deducted)under Sec 203A read with Rule 114A..

However, the Company can still file the return for all the four quarteres of financial year 11-12 as well as fourth quarter of financia year 2010-11.

Now, the Company has to pay 1.50% per month for default in deposting the TDS to the credit of Governemnt u/ 201(1A)(ii).

Mihir Doshi

B.Com CA CS LLB

2187 Points Joined July 2008

Agree with Ms. Sonam

Guest

FILE THE RETURNS AND ISSUE TDS CERTIFICATES QUARTER WISE.PAY INTEREST ON LATE DEPOSIT OF TDS.THE PENAL ACTIONS ARE ON THE DISCRETION OF ITO TDS.

Diwakar Gupta

CA Final Student

36 Points Joined October 2009

Dear Sonam,

I am facing some difficulties in finding out the relevant section that tells me that TDS returns of a period in which TAN was not applied can be filed after acquisition of TAN. Can you please mark me with the relevant section or circular or notification. Moreover, your reply was almost understandable but i am not getting one one thing can TDS returns be filed before application of TAN. Please elaborate.

Thank you